Garrett Hudson earned $895 this week. The deductions from his pay were as follow
ID: 2512158 • Letter: G
Question
Garrett Hudson earned $895 this week. The deductions from his pay were as follows:
Hudson's employer just received a garnishment order (credit card debt of $2,140) against his pay. Compute the following:
Round your answers to the nearest cent.
b. The amount of his pay subject to the garnishment $
A. Disposable earnings are the earnings remaining after withholding for federal and state income taxes, FICA taxes, state unemployment and disability taxes, and deductions required for state employees' retirement systems.
B. The maximum amount of disposable earnings that can be garnished to repay a debt is the lesser of: 25% of disposable earnings for the week; or the amount by which the disposable earnings for the week exceed 30 times the federal minimum wage rate.
Explanation / Answer
a) Hudson's disposable earnings Wages Per Week $895.00 Less: FIT $96.00 FICA-OASDI 55.49 FICA-HI 12.98 State income tax 27.75 State disability insurance 6.71 Hudson's disposable earnings $ $696.07 b) The amount of his pay subject to the garnishment $ B. The maximum amount of disposable earnings that can be garnished to repay a debt is the lesser of: 25% of disposable earnings for the week; or the amount by which the disposable earnings for the week exceed 30 times the federal minimum wage rate.
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